The legal procedure for opening a milk tea shop in Vietnam.

In recent years, the milk tea shop business has been a potential business model and has been paid more attention. Customers are in need of a milk tea shop business, but do not know the legal procedure? Let us find out about it in this article.

Business activities are conducted only when licensed by a competent State body as provided by the laws. All organizations and individuals, when conducting business, must register for a certificate of tax registration and business registration. For the milk tea business model in particular, in addition to the above two certificates, the lease/premises, food safety certificates are also the procedures that need to be followed.

Regarding the lease and business premises

To generate a more favourable business climate, customers need to find a convenient location to open a shop: near big roads, densely populated buildings or offices. Therefore, the general trend is that customers will rent houses/business premises.

When finding the right premises, customers should conclude a deal with the landlord. Then customers should bring the contract to be notarized legally. This document is a condition for customers to apply for a business license, tax registration or other relevant legal procedures.

Business registration certificate and tax registrations

In Vietnam, no matter what business line customers are in, customers need to register a business license with the competent authority with tax registration. These two legal procedures for opening a milk tea shop may be carried out together at the office of the District People’s Committee, where the shop is located. Customers can choose different types of business registrations depending on your business model and capability.

For small and medium-sized shops, business registration is almost a household business with three taxes to pay: value-added tax, personal income tax and license tax. If the revenue of a milk tea shop is less than VND 100 million / year, there is no need to pay taxes.

For larger scale shops or chain businesses, the type of business is usually a company.

Procedure for obtaining food safety certificates

Step 1: Equip knowledge of food hygiene and safety and complete the test

Go to District People’s Committee to request “Declaration of food safety and hygiene knowledge" and “Request for food safety and hygiene certificate".

Fill out the required information in the first declaration and then return to the authorities with a copy of identity card and health certificate of you and your staff.

Study one – day course at the Preventive Medical Center, get questionnaires for examination.

Complete the exam, wait for the results, and receive a certificate of food safety training from the County Health Department.

Step 2: Apply for qualified food hygiene and safety certificate

Fill out the dossiers and prepare additional relevant documents, including:

• The health certificate of the shop owner and all employees which is valid for 12 months.
• Certificate of completion of the training course on food safety knowledge
• The written explanation of quality facilities, tools, and equipment provided by the competent government prescribed by competent State authority.

Finish up other documents when opening a milk tea shop

In addition to the required legal documents, customers also need to complete additional materials such as:

• Papers for changing the purpose of using electricity from household to business household (if so requested)
• A certificate of meeting the conditions of fire protection
• Temporary registration permits for staff
• Conclusion of labour contracts with employees

The above are the necessary procedures for opening a milk tea shop. If customers still have questions about the procedure to open a milk tea shop for business, please contact Viet An Law Firm for specific consultancy.